Tobacco Farmers Cry Foul Over Persistently High Rejection Rates

Tobacco farmers across the country have once again raised concern over the persistently high rejection rates affecting auction burley tobacco since the opening of this year’s tobacco marketing season, warning that the situation is discouraging many growers and pushing small-scale farmers deeper into losses.

The concerns resurfaced on Wednesday when the Parliamentary Committee on Agriculture toured the Lilongwe Auction Floors, where farmers complained that tobacco submitted under the auction system continues to face rejection rates of up to 91 percent compared to contract tobacco, which appears to move more smoothly through the selling process.

One of the farmers, Mediya Falisoni from Dowa District, said the situation has become frustrating for ordinary growers who are spending heavily to produce tobacco but are failing to sell their leaf after repeated rejections on the auction floors.

Falisoni said the imbalance between auction and contract tobacco is creating an unfair trading environment where independent farmers are struggling while those under contracts are being given better opportunities.

“The problem has continued since the market opened. We are suffering as auction farmers. Imagine coming here three times and your tobacco is still being rejected. We are losing money on transport, accommodation, food, and time. It is painful because we work very hard to produce this tobacco,” he said.

He argued that the best solution would be to abandon the contract farming system and allow all tobacco to be sold through open auction markets where buying companies can compete fairly based on volumes produced by farmers.

According to Falisoni, contract farming is benefiting buying companies more than the farmers themselves, as many growers are still earning low profits despite being tied to contractual obligations.

“We are not competing on a fair ground. Farmers on contract are being favored while auction farmers continue struggling. But even those on contract are complaining that prices remain low because companies dictate the prices. The system needs serious review,” he added.

Chairperson of the Parliamentary Committee on Agriculture, Antony Kamoto, acknowledged the frustrations raised by farmers, saying many contract farmers produce tobacco using loans and are expected to repay them after sales.

Kamoto said tobacco buying companies must consider revising contractual arrangements to match the current economic realities so that farmers can earn meaningful profits from their produce.

He further suggested that increasing the number of tobacco buying companies on the market could create healthy competition and give farmers more choices when selling their tobacco.

Meanwhile, Tobacco Commission Chairperson Reverend Daniel Gunya said authorities are aware of the concerns and discussions with stakeholders are continuing to address the challenges.

Gunya admitted that most tobacco buying companies currently prefer the contract system because it is where they invest most of their resources.

In the first four weeks of trading this season, Malawi has sold about 19.3 million kilograms of tobacco valued at approximately US$40.8 million at an average price of US$2.12 per kilogramme.